WVC 8 - 13 B- 15
§8-13B-15. Security for bonds.
Unless the governing body of the municipality shall otherwise
determine in the resolution authorizing the issuance of the revenue
bonds under the authority of this article, there is hereby created
a statutory lien upon the sub-account created pursuant to section
eight of this article and all special district excise tax revenues
collected for the benefit of the district pursuant to section
eleven-a, article ten, chapter eleven of this code, for the purpose
of securing the principal of said bonds and the interest thereon.
The principal of and interest on any bonds issued under the
authority of this article shall be secured by a pledge of the
special district excise tax revenues derived from the downtown
redevelopment district project by the governing body of the
municipality issuing such bonds to the extent provided in the
resolution adopted by the governing body of the municipality
authorizing the issuance of the bonds. In the discretion and at
the option of the municipality, such revenue bonds may also be
secured by a trust indenture by and between the municipality and a
corporate trustee, which may be a trust company or bank having
trust powers, within or without the state of West Virginia. The
governing body may authorize the issuance of such revenue bonds by
resolution. The resolution authorizing the revenue bonds and
fixing the details thereof may provide that such trust indenture
may contain such provisions for the protection and enforcing the
rights and remedies of the bondholders as may be reasonable and proper, not in violation of law, including covenants setting forth
the duties of the municipality in relation to the construction,
acquisition or financing of a downtown redevelopment district
project, or part thereof, or an addition thereto, and the
improvement, repair, maintenance and insurance thereof, and for the
custody, safeguarding and application of all moneys, and may
provide that the downtown redevelopment district project shall be
constructed and paid for under the supervision and approval of the
consulting engineers or architects employed and designated by the
governing body or, if directed by the governing body in the
resolution, by the district board, and satisfactory to the
purchasers of the bonds, their successors, assigns or nominees, who
may require the security given by any contractor or any depository
of the proceeds of the bonds or the revenues received from the
downtown redevelopment district project be satisfactory to such
purchasers, their successors, assigns or nominees. Such indenture
may set forth the rights and remedies of the bondholders, the
municipality or such trustee, and said indenture may provide for
accelerating the maturity of the revenue bonds, at the option of
the bondholders or the governmental body issuing the same, upon
default in the payment of the amounts due under the bonds. The
governing body may also provide by resolution and in such trust
indenture for the payment of the proceeds of the sale of the bonds
and the revenues from the downtown redevelopment district project
to such depository as it may determine, for the custody and investment thereof and for the method of distribution thereof, with
such safeguards and restrictions as it may determine to be
necessary or advisable for the protection thereof and upon the
filing of a certified copy of such resolution or of the indenture
for record in the office of the clerk of the county commission of
the county in which a downtown redevelopment district project is
located, the same shall have the same effect, as to notice, as the
recordation of a deed of trust or other recordable instrument. In
the event that more than one such certified resolution or indenture
is so recorded, the security interest granted by the first such
recorded resolution or indenture shall have priority in the same
manner as an earlier filed deed of trust except to the extent such
earlier recorded resolution or indenture provides otherwise.

In addition to or in lieu of the indenture provided for
hereinabove the principal of and interest on said bonds may, but
need not, be secured by a mortgage or deed of trust covering all or
any part of the downtown redevelopment district project from which
the revenues so pledged may be derived, and the same may be secured
by an assignment or pledge of the income received from the downtown
redevelopment district project. The proceedings under which such
bonds are authorized to be issued, when secured by a mortgage or
deed of trust, may contain the same terms, conditions and
provisions provided for herein when an indenture is entered into
between the governing body and a trustee and any such mortgage or
deed of trust may contain any agreements and provisions customarily contained in instruments securing bonds, including, without
limiting the generality of the foregoing, provisions respecting the
fixing and collection of revenues from the downtown redevelopment
district project covered by such proceedings or mortgage, the terms
to be incorporated in any lease, sale or financing agreement with
respect to such downtown redevelopment district project, the
improvement, repair, maintenance and insurance of such downtown
redevelopment district project, the creation and maintenance of
special funds from the revenues received from the downtown
redevelopment district project and the rights and remedies
available in event of default to the bondholders, the governing
body, or to the trustee under an agreement, indenture, mortgage or
deed of trust, all as the governing body shall deem advisable and
as shall not be in conflict with the provisions of this article or
any existing law: Provided, That in making any such agreements or
provisions a municipality shall not have the power to incur
original indebtedness by indenture, ordinance, resolution, mortgage
or deed of trust, except with respect to the downtown redevelopment
district project and the application of the revenues therefrom, and
shall not have the power to incur a pecuniary liability or a charge
upon its general credit or against its taxing powers unless
approved by the voters in accordance with article one, chapter
thirteen of this code, or as otherwise permitted by the
constitution of this state. The proceedings authorizing any bonds
hereunder and any indenture, mortgage or deed of trust securing such bonds may provide that, in the event of default in payment of
the principal of or the interest on such bonds or in the
performance of any agreement contained in such proceedings,
indenture, mortgage or deed of trust, such payment and performance
may be enforced by the appointment of a receiver in equity with
power to charge and collect rents or other amounts and to apply the
revenues from the downtown redevelopment district project in
accordance with such proceedings or the provisions of such
agreement, indenture, mortgage or deed of trust. Any such
agreement, indenture, mortgage or deed of trust may provide also
that, in the event of default in such payment or the violation of
any agreement contained in the mortgage or deed of trust, the
agreement, indenture, mortgage or deed of trust may be foreclosed
either by sale at public outcry or by proceedings in equity and may
provide that the holder or holders of any of the bonds secured
thereby may become the purchaser at any foreclosure sale, if the
highest bidder therefor. No breach of any such agreement,
indenture, mortgage or deed of trust shall impose any pecuniary
liability upon a municipality or any charge upon its general credit
or against its taxing powers.

Note: WV Code updated with legislation passed through the 2014 1st Special Session
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